Quest Diagnostics' (DGX) Haystack Oncology Inks New Deal
Quest Diagnostics’ DGX subsidiary, Haystack Oncology, recently announced a collaboration with the Rutgers Cancer Institute of New Jersey, through which Haystack Oncology's leading, minimal-residual disease (MRD) technology (Haystack MRD) will be used in the clinical study of early-stage triple-negative breast cancer. Rutgers Cancer Institute, together with RWJBarnabas Health, is the state’s only Comprehensive Cancer Center designated by the National Cancer Institute.
Quest Diagnostics acquired Haystack Oncology in June 2023, which has positioned the former to enter the high-growth liquid biopsy area of MRD testing. The integration of the business is currently on track and is included in the company’s Diagnostics Information Services (“DIS”) segment.
About Rutgers Cancer Institute
The institute offers advanced cancer treatment options, including bone marrow transplantation, proton therapy, CAR T-cell therapy and complex surgical procedures. Along with clinical trials and novel therapeutics, such as precision medicine and immunotherapy — many of which are not widely available — patients have access to these cutting-edge therapies at the Rutgers Cancer Institute of New Jersey in New Brunswick and the Rutgers Cancer Institute of New Jersey at University Hospital in Newark, as well as through RWJBarnabas Health facilities.
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About Haystack Oncology’s MRD Testing
Haystack Oncology's tumor-informed MRD test is based on 20 years of research and development by cancer genomics pioneers and liquid biopsy experts at the Johns Hopkins School of Medicine. The company, a wholly owned subsidiary of Quest Diagnostics, mainly works with biopharmaceutical companies to advance important therapeutics to global markets, from early-phase clinical development to companion diagnostics.
Haystack MRD uses an error-corrected ctDNA technology to detect down to one ctDNA molecule in a million. Quest Diagnostics expects to incorporate this MRD technology into the development of new blood-based clinical lab services for solid tumor cancers, available beginning in 2024.
News in Detail
The collaboration will help evaluate the therapeutic response and provide molecular insights for a Rutgers Cancer Institute clinical trial examining early-stage triple-negative breast cancer (TNBC) patients undergoing treatment in the adjuvant setting with liposomal doxorubicin and carboplatin.
Haystack MRD boasts unparalleled sensitivity, providing a tool for anticipating and evaluating treatment-related benefits to a greater depth than standard clinical and radiographic metrics. This makes it well-equipped to support clinical studies, which are important for advancing cancer care. The company’s spokesperson expressed delight in working with Rutgers Cancer Institute in their efforts to optimize therapeutic strategies for patients with early-stage breast cancer.
Industry Prospects
According to a Precedence Research report, the global breast cancer market was valued at $28.8 billion in 2022 and is expected to witness a CAGR of 9.9% by 2032.
Recent Collaborations
Last month, Quest Diagnostics and Scipher Medicine announced a multi-pronged collaboration to expand patient access to diagnostic services, advancing precision medicine for rheumatoid arthritis — an autoimmune disorder affecting approximately 1.3 million people in the United States. DGX will provide advanced RNA extraction and next-generation sequencing services for Scipher's breakthrough PrismRA test.
The company also announced a strategic collaboration with Universal DX (“UDX”) to bring UDX's Signal-C, an advanced colorectal cancer screening blood test, to patients and providers in the United States. The partnership aims to combine UDX's innovative liquid biopsy screening technology with Quest Diagnostics' expertise and national scale in the United States.
Price Performance
In the past six months, shares of DGX have decreased 2.6% compared to the industry’s rise of 2.4%.
Zacks Rank and Key Picks
Quest Diagnostics currently carries a Zacks Rank #3 (Hold).
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